Search found 118 matches

by cvn74n2
Sun Mar 17, 2024 5:40 pm
Forum: Personal Investments
Topic: Roth Conversion for TSP
Replies: 15
Views: 1164

Re: Roth Conversion for TSP

Also I would recommend reviewing the non-spouse beneficiary inheritance rules with TSP to see if a rollover would be appropriate ("the death benefit payment cannot be rolled over into any type of IRA or plan". https://www.tsp.gov/for-beneficiaries/b ... ributions/
by cvn74n2
Sun Mar 17, 2024 5:21 pm
Forum: Personal Consumer Issues
Topic: Alaska cruise recommendations
Replies: 20
Views: 1490

Re: Alaska cruise recommendations

We did a 10 day Norwegian cruise on the Sun (approx 2100 passengers) from Seattle after 2023 Labor Day with very few kids (ship said around 20 total) and reduced prices (ours were $750 each for an inside cabin including taxes/fees and unlimited bar/soft drinks and one specialty restaurant). This was our first and only Alaska cruise - disappointed in Ketchikan, Skagway, and Icy Strait Point stops (very touristy). Glacier Bay, Juneau, and Victoria were nicer. Expect variable weather regardless when you cruise and always have rain gear (jacket and pants). A good set of hiking shoes would also be advised. We booked our own excursions, about a 25-33% less than the ship's, and never had a problem with arrival and departure schedules. The ship its...
by cvn74n2
Sat Mar 16, 2024 4:56 pm
Forum: Personal Consumer Issues
Topic: funeral preparations
Replies: 16
Views: 1581

Re: funeral preparations

I am looking at a no frills cremation but am concerned the funeral home would go out of business/change ownership in the next 20+ years (estimated life expectancy). Has anyone experienced problems with funeral pre-payment hassles along these lines?
by cvn74n2
Sun Feb 18, 2024 12:06 pm
Forum: Personal Investments
Topic: Help me understand SCHO (Schwab Short-Term US Treasury) ETF...
Replies: 22
Views: 2029

Re: Help me understand SCHO (Schwab Short-Term US Treasury) ETF...

Using instead of reinvesting dividends will always impact NAV returns. When you bought SCHO, what was its current YTM (I suspect under 1%)? Looking at Porfolio Visualizer, reinvesting the dividends on a $10,000 investment in Dec 21 would have resulted in a net gain of $26 through Jan 24 with a CAGR of 0.12%.

If you had bought a bond or ladder of bonds and waited until maturity, you might have done slightly better; but you would not have likely received as much in dividends to pay the bills so the IRR would be about the same.

Bonds are just math equations if held to maturity with no emotions involved.
by cvn74n2
Sun Feb 11, 2024 1:26 pm
Forum: Investing - Theory, News & General
Topic: Trading Treasuries (nominal and TIPS)
Replies: 4107
Views: 455687

Re: Trading Treasuries (nominal and TIPS)

I have bought a fair amount of TIPS on Schwab and Vanguard over the past year ($330,000+) but never received half between bid/ask spread (e.g. price improvement). I click on buy at the quantity level I want and the yield is the same as the ask yield that is displayed on the market depth screen. Sometimes I will hit refresh on the buy screen to see if there has been any movement on the price but have come to the conclusion that the price is the price and yield is the yield at that moment in time. If others are able to halve the spread, what am I doing wrong?
by cvn74n2
Sat Feb 10, 2024 4:56 pm
Forum: Personal Finance (Not Investing)
Topic: Long term view of IRMAA, Roth conversions and income
Replies: 16
Views: 2458

Re: Long term view of IRMAA, Roth conversions and income

Another factor to consider is selling/downsizing a primary home that has appreciated far above the $500k capital gain tax exclusion. In today's real estate market, that might not too hard to do and push you into IRMAA tiers.
by cvn74n2
Sat Feb 10, 2024 4:12 pm
Forum: Personal Investments
Topic: What is the Most You Would Buy in the I Bond Gift Box in a Year?
Replies: 14
Views: 1368

Re: What is the Most You Would Buy in the I Bond Gift Box in a Year?

We look at our IBonds as part of the portfolio for self-insuring against LTC costs (along with our tIRAs and home equity). We hope not to need LTC for 20+ years but one never knows, so IBond redemption flexibility is a great help. Therefore, we are keeping 10 years worth of IBonds in each of our gift boxes. In the unlikey but possible event one of us pass before delivery of them, all the gift IBonds will be automatically delivered to the survivor in the year of death.
by cvn74n2
Sat Feb 10, 2024 3:51 pm
Forum: Investing - Theory, News & General
Topic: Shiller PE seems mostly useless
Replies: 208
Views: 12263

Re: Shiller PE seems mostly useless

If, by using CAPE to guide your investment decisions at both the single stock and asset apportionment levels, are you not by BH convention an active investor? If true, then it kind of goes against the general BH philosophy of buying the haystack and letting the market decide value. I am not saying using CAPE is objectively right or wrong for a person's subjective investing policy, just ensuring folks who practice this acknowledge it as such.
by cvn74n2
Sun Jan 21, 2024 4:33 pm
Forum: Investing - Theory, News & General
Topic: S&P 500 Closes at Record High
Replies: 203
Views: 26149

Re: S&P 500 Closes at Record High

If reasonable discussion cannot be achieved in discussing the value of the S&P 500 reaching its all-time high, then the thread is not really actionable and should be closed by the mods. Personal observation: The tone in this and some other BH threads over the past couple years have been slowly devolving to a Yahoo Finance / Reddit level.
by cvn74n2
Mon Jan 01, 2024 10:45 pm
Forum: Investing - Theory, News & General
Topic: Buffered ETF's
Replies: 4
Views: 1120

Re: Buffered ETF's

We are retired and bought Innovator's TJUL fund when it broke below its break-even point after expenses (~$24.47). While the upside is limited, we know we can't lose money on it for its duration. If/when SPY breaks above TJUL's cap, we will consider selling and banking the gains. We will also be monitoring if the newly issued AJAN breaks below its break-even point (~$23.94 after expenses) and buy as well. We recognize these goes against BH dogma (only guaranteed bonds are for ballast/safety), but the funds offer the potential for a higher rate of return along with some tax savings (if in a taxable account) from a long-term capital gain/loss perspective. Also, we looked to replicate Innovator's strategy (long term European style LEAPS option...
by cvn74n2
Sun Dec 03, 2023 8:56 am
Forum: Personal Finance (Not Investing)
Topic: Corporate pension calculation deducting estimated social security benefit question
Replies: 8
Views: 638

Re: Corporate pension calculation deducting estimated social security benefit question

Also, the company got to deduct its FICA contributions as a business expense, so super chintzy.
by cvn74n2
Mon Nov 27, 2023 4:22 pm
Forum: Personal Consumer Issues
Topic: New TV: OLED vs QLED
Replies: 53
Views: 17028

Re: New TV: OLED vs QLED

I would add to remember how the TV / AVR interact with the source material (streaming, DVD, Blu-Ray, etc). If the material and /or player is at a lower resolution than the TV, then viewing it outside its native resolution will potentially introduce noticeable artifacts through the up-scaling processing. Also, chasing studio quality resolution is a never ending cycle that can cause addition (ask any Stereophile reader).
by cvn74n2
Fri Nov 24, 2023 7:32 am
Forum: Personal Finance (Not Investing)
Topic: H&R Block 2023 software offer
Replies: 246
Views: 38149

Re: H&R Block 2023 software offer

I bought the Deluxe with State version on Amazon using the Amazon Prime credit card that offers a 20% reward on the purchase, resulting in a sub $20 net cost.
by cvn74n2
Tue Oct 24, 2023 11:17 pm
Forum: Personal Investments
Topic: Traditional TSP --> Roth IRA process
Replies: 31
Views: 5117

Re: Traditional TSP --> Roth IRA process

Just in case you have tax exempt money in your Traditional TSP (i.e. Combat Zone Tax Exempt contributions), they are pro-rated to the distribution. I had issues with TSP commingling the funds together when I did a partial distribution for a roll-over to my tIRA account that required involving my Congressperson to fix (see viewtopic.php?t=382265 for more details).
by cvn74n2
Tue Oct 24, 2023 3:23 pm
Forum: Investing - Theory, News & General
Topic: Trading Treasuries (nominal and TIPS)
Replies: 4107
Views: 455687

Re: Trading Treasuries (nominal and TIPS)

While most of my fixed income is in an LMP ladder of TIPS extending to 2050, I found some Treasury Zeros to be enticing in the 2039-2041 timeframe. They ranged from 5.45% to 5.55% YTM this morning on Vanguard. Recognizing there is some interest rate risk with them, I found the breakeven rate of ~2.8% (extrapolated from TIPS maturing in 2040) to be be worth taking the risk with a small portion (~2%) of the fixed income slice in my tIRA. While not wedded to them until maturity, the value proposition to me was worth the risk and I can live with the guaranteed return should rates increase. Any one else looking at Treasury Zeros in the current bond environment?
by cvn74n2
Sat Oct 21, 2023 2:53 pm
Forum: Investing - Theory, News & General
Topic: Taxation of Treasury bills, notes and bonds
Replies: 1028
Views: 149539

Re: Taxation of Treasury bills, notes and bonds

I think cas has a point. If one transfers a bond/brokerage CD prior to maturity from a tIRA to Roth and the accrued interest is not included in the transfer, then once it matures in the Roth, how would the pre-tax interest be discerned? To update my post, I went back and looked at some previous Schwab monthly statements and saw journaled share values included the Index Ratio. I find it curious that the statement does, but the transaction page does not, you would think the two would mirror each other. Another curious item is how Schwab calculates TIPS cost basis. The brokerage confirmation statement shows the accurate cost basis (price, incurred interest, and Index Ratio), but the cost basis on the online account summary is different. In som...
by cvn74n2
Sat Oct 21, 2023 9:14 am
Forum: Investing - Theory, News & General
Topic: Taxation of Treasury bills, notes and bonds
Replies: 1028
Views: 149539

Re: Taxation of Treasury bills, notes and bonds

A slight variation to the previous OID tax question for tax modeling purposes:

When converting TIPS from a tIRA to Roth, is it correct for me to assume the value converted will be calculated based on price, number, and Index Ratio on the day the shares are journaled as if they were sold and then re-bought?

As of now, only the price and number are reflected in my account on Schwab's transaction page; but either the 1099-B or 1099-OID should reflect the total value based on the conversion date when they are issued next year.

Could be a gotcha if one is just relying on Schwab's transaction page to plan for taxes.
by cvn74n2
Sun Oct 08, 2023 4:12 pm
Forum: Investing - Theory, News & General
Topic: US Treasury 30Y bond to offset mortgage interest
Replies: 40
Views: 6569

Re: US Treasury 30Y bond to offset mortgage interest

Unless I am missing something, wouldn't you will still have the same mortgage payment after buying down principal - just less time in paying it since more is going towards principal. The only way I see that you can allocate the savings immediately towards AA is to re-characterize the mortgage with the new lower principal AND the same interest rate which are not givens in today's market.
by cvn74n2
Sun Oct 08, 2023 3:02 pm
Forum: Personal Investments
Topic: I bond asset allocation
Replies: 32
Views: 3435

Re: I bond asset allocation

We have mentally allocated I-Bonds to our cash pile. They currently consist 15% of our portfolio and 60% of our cash. We look at them to pay for lumpy expenses in retirement (auto, roof, siding) and/or as a reserve for self-funding long-term healthcare costs. We recognize they are not as attractive as TIPS right now (to which 85% of our fixed income is allocated), but we like their simplicity, tax deferredness, and redemption optionality after one year. We swapped some 0% fixed bonds into the current .9% fixed and will wait to see what the new fixed rate will be come November in order to figure out what to do with most of our remaining 0% fixed bonds (likely swap them starting next year calendar year for tax purposes). For those interested ...
by cvn74n2
Wed Oct 04, 2023 4:58 pm
Forum: Personal Investments
Topic: iShares Defined-Maturity Treasury Inflation-Protected Securities (TIPS) ETFs. Any Phantom Income Issues?
Replies: 14
Views: 2331

Re: iShares Defined-Maturity Treasury Inflation-Protected Securities (TIPS) ETFs. Any Phantom Income Issues?

I too like the idea behind the ETFs for their simplicity. However, like others, low volume remains an issue. I bought 200 shares of the Oct 2024 ETF (IBIA) on 29 Sep to fill a gap in my Liability Matching Portfolio. Only a couple other investors did the same that day so price spreads were $.04-.06 instead of $.01-02. Also, I called BlackRock on a couple questions I had regarding the series but have yet to hear back from them. The questions were: The Estimated Net Acquisition ENA) YTM calculator for IBIA showed 4.23% with a .10% hit for fees. At the time, none of the actual TIPS were even close to that so how was that calculated? I suspect it is a projection of combined real and nominal yields (i.e. once TIPS mature, BlackRock puts the money...
by cvn74n2
Wed Sep 27, 2023 5:40 pm
Forum: Personal Investments
Topic: JTUL [actually TJUL - Equity Defined Protection ETF]
Replies: 19
Views: 1639

Re: JTUL [actually TJUL - Equity Defined Protection ETF]

FWIW, I have been dipping my toes in the TJUL pool yesterday and today when the share price went below the price that incorporates the management fees ($24.48 is break-even). I look at this as a guaranteed winner with the profit range at the end of the period somewhere between $.08-$4.20 per share at an average purchase price of $24.40 per share. It also provides a built-in put option to sell if/when the share price approaches the cap prior to maturity. Finally, it can qualify as a long-term capital gain in a taxable account if held for a year plus a day. While it does not come with the yield guarantees a TBill/Note offers, the opportunity to out-strip them and with the tax benefits, I took a flyer with a couple hundred shares.
by cvn74n2
Sun Sep 10, 2023 11:31 pm
Forum: Personal Investments
Topic: Variable annuities seem great. So why are they bad?
Replies: 32
Views: 4014

Re: Variable annuities seem great. So why are they bad?

Like Nedsaid, I invested a small lump sum in the Vanguard Variable Annuity in the early 1990s to increase our tax deferred space beyond the $2000 IRA limit since TSP was not offered to military members at the time and we had maxed out buying EE Savings Bonds. It worked out OK with relatively low fees, no commissions, and trackable, low cost mutual funds for a 30 year CAGR of ~7%. This year, we 1035 exchanged and annuitized it for guaranteed joint life income to supplement my pension and eventually Social Security. Knowing what I know now, I would have made more by investing the money in my taxable Vanguard S&P 500 mutual fund but don't regret how it turned out. The TLDR: some variable annuity products could work in certain situations.
by cvn74n2
Fri Sep 08, 2023 4:18 pm
Forum: Personal Investments
Topic: What am I missing - AVIE?
Replies: 14
Views: 1761

Re: What am I missing - AVIE?

FWIW, I listened to thought leaders here and did not want to be stranded on this ETF island, selling my shares today for a very slight profit, investing the proceeds in SPLG (VOO equivalent) instead.

It still baffles me why a reasonable ETF (both constituent list and a not-too-bad .25% expense ratio) from a well-regarded provider garners so little attention while others with much larger expense ratios and more wonky premises (e.g. TJUL, ACIO, XLCR) outstrip it in daily volume and AUM.
by cvn74n2
Thu Sep 07, 2023 4:53 am
Forum: Personal Investments
Topic: What am I missing - AVIE?
Replies: 14
Views: 1761

What am I missing - AVIE?

I have a very small footprint in Avantis' Inflation Focused Equity ETF (AVIE) but find myself as the only buyer the past week. I find the ETF's constituents reasonable and a nice complement to both US Total Market (i.e. Vanguard VTI) and Schwab's US Dividend Equity ETF (SCHD)- both components of my portfolio. But AVIE's volume (basically me the past week) has been meager and I just don't understand why. More extreme ETFs (the Ark ETFs for example) have far more daily activity than AVIE. Is AVIE just an under-appreciated ETF or is there something more problematic brewing? FWIW, I cannot find another ETF/Mutual Fund that comes close to AVIE's underlying stock make-up on a proportionate basis with greater activity and closer bid-ask spreads. A...
by cvn74n2
Mon Sep 04, 2023 10:32 pm
Forum: Investing - Theory, News & General
Topic: TIPS ladder- Two strategies for dealing with 2034-2039
Replies: 72
Views: 9649

Re: TIPS ladder- Two strategies for dealing with 2034-2039

I have two plans:

Plan A: Buy 10 year TIPS at auction using the proceeds from maturing TIPS each year if the real YTM appears favorable (+1.0%)
Plan B: Deliver the 0.9% fixed rate I-Bonds currently in our gift boxes each year

While this plan cannot be scaled (limited to $10k each year per person for I-Bonds), it is sufficient for our needs to supplement other income.

I like the optionality / flexibility to make a last minute decision.
by cvn74n2
Mon May 29, 2023 10:19 am
Forum: Personal Consumer Issues
Topic: Buy 2023 Honda Odyssey or wait for 2024 model?
Replies: 19
Views: 4202

Re: Buy 2023 Honda Odyssey or wait for 2024 model?

OP,
Be sure your eventual tow vehicle is capable of pulling your fifth wheel. Looking up the 2023 Toyota Sequoia specs, max towing is ~9500 lbs. I wouldn't want to drive/pull anything without a 10% safety margin (~8600 lbs in this case).
by cvn74n2
Sun May 14, 2023 12:28 am
Forum: Personal Investments
Topic: Deferred Annuity to Cover Difference in SS Monthly Payment
Replies: 11
Views: 1331

Re: Deferred Annuity to Cover Difference in SS Monthly Payment

OP, A lot will depend on your cousin's general health as well as risk disposition to make an informed decision. I would suggest the mathematical crossover between taking Social Security now versus deferring to age 70 will be around age 82. If her health is poor and unlikely to make it to that age, then taking it now would make sense. Also, if she is a "bird in the hand is worth two in the bush" type, then taking it now would align with her risk disposition. As for the DIA versus IRA, it again depends whether receiving current income makes her feel safe and improves her quality of life versus accepting the vagaries/risks of the market with the goal to possibly/likely make more in the long run. A factor to consider is her plans on l...
by cvn74n2
Sat May 13, 2023 1:15 pm
Forum: Personal Investments
Topic: Deferred Annuity to Cover Difference in SS Monthly Payment
Replies: 11
Views: 1331

Re: Deferred Annuity to Cover Difference in SS Monthly Payment

Using your parameters, it would take ~$170,000 to buy a 4 year delayed DIA with 2% annual increases per Blueprint Income. Instead, if she were to withdraw ~$3500/mo ($170,000 / 48 months) from the IRA as a 4 year gap filler while deferring taking Social Security until 70, she would likely come out ahead.
by cvn74n2
Sat May 13, 2023 12:55 pm
Forum: Personal Investments
Topic: Cashing in/buying new I-Bonds in same year
Replies: 4
Views: 834

Re: Cashing in/buying new I-Bonds in same year

If you have a trusted significant other, you can use the gift box strategy and buy each other bonds now for delivery in the the future (next year at the earliest). That way you will lock in the .9% fixed rate.
by cvn74n2
Fri May 12, 2023 10:15 pm
Forum: Personal Investments
Topic: are tips funds exempt from state tax
Replies: 10
Views: 943

Re: are tips funds exempt from state tax

If you are certain you won't be buying a vehicle(s) in the next couple years, you could buy enough I-Bonds through a gift box strategy (e.g., $10k each for this year and prefund $20k each for the following two calendar years in gift boxes). That will net you $60k plus 0.9% over inflation (minus the last three months interest penalty) and allow you to buy an upscale new model or a couple new-ish reliable BH vehicles in early 2025. This avoids any duration risk associated with a TIPS fund and still remain untaxed at the state/local levels. Many BHers use I-Bonds as a reserve cash fund for such purposes.
by cvn74n2
Fri Apr 28, 2023 4:46 pm
Forum: Investing - Theory, News & General
Topic: I Bonds Mega Thread (I Bond Heads Rejoice!)
Replies: 6651
Views: 1203867

Re: I Bonds Mega Thread (I Bond Heads Rejoice!)

We just delivered July 2022 IBonds (0% fixed rate) from our TD gift boxes in order to sell in Oct and gift the new IBonds with the .9% fixed rate. I want to thank others (esp. #Cruncher) who calculated the breakeven stats.

We would have done more with other IBond tranches having 0% fixed rate but wanted to balance the tax implications with our already completed Roth conversions. If I am able to TLH prior to Nov, I may do more tranches. If not, I am satisfied.
by cvn74n2
Sat Feb 04, 2023 12:39 pm
Forum: Investing - Theory, News & General
Topic: Anyone experience problems with TSP RMDs in 2022?
Replies: 30
Views: 4179

Re: Anyone experience problems with TSP RMDs in 2022?

Whelandw,
I understand your frustration as I experienced it as well from well-meaning but under-trained TSP CSRs. Elevation to a supervisor did little in my case. It was only after my Congressional Representative office made an inquiry did my case go to the Enhanced Resolution Team who reviewed the file, saw the TSP error, and resolved it. That took over 6 weeks from ERT contact to checks in hand. I recommend doing something similar.
by cvn74n2
Sat Feb 04, 2023 11:51 am
Forum: Personal Investments
Topic: iShares iBonds
Replies: 17
Views: 4495

Re: iShares iBonds

I did a quick scenario using IShares iBonds Dec23 Term Treasury (IBTD). If you bought at NAV on Friday, 03 Feb, ($24.69) and held to maturity on 15 Dec 23, you would receive $25 plus the interest payments made between now and then. I calculated this by subtracting the current value of the holding from par value and then dividing by the number of outstanding shares. IShares calculates current weighted YTM of the holdings is 4.63% less the .07% fee realizing a 4.56% YTM. I don't see it much different than holding a bond ladder with many holdings because that's what it is. As others have said, it would be a viable alternative to self-creating a bond ladder for those like my wife who have little interest in managing a portfolio. I liken it to b...
by cvn74n2
Sat Feb 04, 2023 9:51 am
Forum: Investing - Theory, News & General
Topic: Anyone experience problems with TSP RMDs in 2022?
Replies: 30
Views: 4179

Re: Anyone experience problems with TSP RMDs in 2022?

On 03 Feb 23, TSP posted on its website acknowledgement of programming issues involving installment payments. The proposed work-around is to take partial withdrawals but with two stipulations: minimum amounts must be $1000 and can only be done every 30 days. No ETA on a fix. I suspect this programming issue also is involved in reported missing RMD catch-up payments from the end of 2022 as well as tax withholding issues others have experienced. These "growing pains" with Accenture Federal is having real-world consequences to a number of folks in the system. I recommend those affected contact their Congressional Representative offices to report their issue(s) with TSP to alert them to these problems. While they may be generally awar...
by cvn74n2
Tue Jan 24, 2023 1:18 pm
Forum: Personal Finance (Not Investing)
Topic: First Time TSP Withdrawal, question
Replies: 17
Views: 1290

Re: First Time TSP Withdrawal, question

I am not sure where MnD found the information on website/back office updates since nothing along those lines are reflected on the TSP website, FRTIB minutes, or GovExec / FedWeek that I have found. If true and successful (not a sure thing with the current contractor/subs which have been formally in place since May 2022), then perhaps some/many/all the current issues will be resolved. Another thing to keep in mind is the inability to convert Traditional TSP money to Roth TSP. This has been a known request from participants since at least 2017 but not acted on due to antiquated back-office software per the FRTIB. I had hopes when they announced and implemented the out-sourcing of back-office processes, but nothing has been suggested along tho...
by cvn74n2
Tue Jan 24, 2023 9:44 am
Forum: Personal Finance (Not Investing)
Topic: First Time TSP Withdrawal, question
Replies: 17
Views: 1290

Re: First Time TSP Withdrawal, question

I made the decision to close my TSP account after a partial withdrawal SNAFU involving Combat Zone Tax Exempt money in a Traditional TSP account (see my other posts on the issue for more info). I did a direct rollover to my Traditional IRA via FBO check for the taxable portion and an indirect rollover to my Roth IRA with the tax exempt money. I chose physical checks vice ACH to have some control and not get lost in the system. The 1099-Rs I just received correctly characterized these activities as non-taxable events. The G Fund was not worth it to me for the time and headaches the TSP systemic problems were causing. Based on other issues (e.g., missing/incorrect RMDs, undocumented minimum partial distribution requirements, missing beneficia...
by cvn74n2
Thu Jan 05, 2023 1:22 am
Forum: Investing - Theory, News & General
Topic: Anyone experience problems with TSP RMDs in 2022?
Replies: 30
Views: 4179

Re: Anyone experience problems with TSP RMDs in 2022?

2retire, I had a different TSP issue (commingling of taxable and Combat Zone tax exempt funds in a distribution) that forced me to contact my Congressional Representative to gain traction on the issue after 4 weeks of my trying through the CSR interface. It only took two days after the inquiry for TSP to elevate and begin resolving the issue (but that took over three additional weeks of internal TSP processing). Once resolved, I closed my TSP account and transferred the monies to my Traditional and Roth IRAs to avoid more growing pains / issues. I also wrote back to my Representative outlining the process resolution timelines and opined there are likely more customer-facing issues due in part to the out-sourcing of both back- and front-offi...
by cvn74n2
Thu Dec 29, 2022 3:40 pm
Forum: Personal Investments
Topic: Rollover Military TSP to Schwab with updated TSP portal
Replies: 25
Views: 5170

Re: Rollover Military TSP to Schwab with updated TSP portal

To follow up my post from before, regarding TSP's commingling of taxable and Combat Zone tax exempt funds in my partial distribution, I had to involve my Congressperson to send an inquiry after four weeks of getting nowhere with CSRs and supervisors. Within two days of the inquiry, I received a call from the Enhanced Response Team. I (re) explained the situation and she would look into it. Three days later, the ERT member said it was TSP's fault and they would rectify it by cancelling the check and re-issue two checks (rollover of taxable and send tax-exempt to me). From that statement, it took TSP 3 weeks of internal processing to cancel and re-issue. I finally received the checks on 19 Dec. Upon receipt, I called TSP (direct to the ERT) a...
by cvn74n2
Sun Dec 04, 2022 12:38 pm
Forum: Investing - Theory, News & General
Topic: Trading Treasuries (nominal and TIPS)
Replies: 4107
Views: 455687

Re: Trading Treasuries (nominal and TIPS)

I see nothing horribly wrong with either of these approaches if one wants to maintain about a constant 10-year maturity for some reason, although there would be slightly less trading costs with a rolling ladder, in which proceeds from a maturing bond (no trading costs) are used to buy the long rung in the ladder at auction (no trading costs Kevin, I'm confused. Doesn't this approach give you an average maturity of a little less than five years? By rolling a ten every three months the "price" of your protfolio remains fairly constant. I didn't specify the long rung of the ladder, but this is a good question. To get a duration approximately the same as rolling a 10-year every 3 months, with a rolling ladder with bonds held to matur...
by cvn74n2
Tue Oct 25, 2022 3:17 pm
Forum: Personal Investments
Topic: Rollover Military TSP to Schwab with updated TSP portal
Replies: 25
Views: 5170

Re: Rollover Military TSP to Schwab with updated TSP portal

I would like to provide another data point regarding TSP rollovers. Of note, I have approximately 1% in tax exempt funds in my traditional TSP which requires proration when a distribution is made per TSP policy. On 12 Oct, I attempted to do a partial distribution rollover from my tradition TSP account to Schwab. I wanted to rollover my pre-tax to my Schwab IRA via a FBO check to me as well as a separate check of the tax exempt funds to me so I could deposit them into my Schwab Roth IRA (already received Schwab's paperwork to allow this to happen). I went through the website all the way to the end for submission when it errored out and said to call the Thriftline. I called the Thriftline (under 2 minutes on hold) and worked with an agent to ...
by cvn74n2
Mon Jun 27, 2022 4:20 pm
Forum: Personal Investments
Topic: Wade Pfau Retirement Planning Handbook - Annuity instead of bonds?
Replies: 121
Views: 12009

Re: Wade Pfau Retirement Planning Handbook - Annuity instead of bonds?

Resurrecting an older thread. In light of the current rate environment, has anyone's thoughts changed on purchasing SPIAs? I ask as I am looking at period certain SPIAs (30 years) with an annual 4% bump on contract anniversary. This results in ~$206,000-$216,000 total return over 30 years with a $100,000 investment today (total depends on if I start taking income next month versus next year). XIRR comes out to ~4.7% for both. What I seek is a stable income stream supplement that meets/beats inflation over the years in a relatively less risky product recognizing the income stream ends in 30 years. This investment would replace a Vanguard/Transamerica non-qualified variable annuity we bought in 1993 (it's annuitization XIRR is 4% regardless o...
by cvn74n2
Wed Jun 08, 2022 10:41 am
Forum: Personal Finance (Not Investing)
Topic: Anyone have any luck with new TSP login?
Replies: 373
Views: 39641

Re: Anyone have any luck with new TSP login?

I just set up my new login with no issues - took about 10 minutes. Once in, I played around and found the website is just OK (desktop only user). While the account balances are accurate, missing is all my old account information - the site only shows info from 31 May forward. I suspect they will be backloading the old data over time on a not-to-interfere basis (think weekend nights and federal holidays). Also missing are some of the old tools like the annuity calculator. I liked having that tool readily available even without logging in to get a sense of what are return possibilities. As the backloading progresses, the site matures, and I become accustomed to the navigation, it will be fine. If/when I decide to consolidate all retirement ac...
by cvn74n2
Sun May 29, 2022 9:36 pm
Forum: Personal Finance (Not Investing)
Topic: One-Time Lump Sum Pension Withdrawal Offer from former employer
Replies: 13
Views: 2079

Re: One-Time Lump Sum Pension Withdrawal Offer from former employer

OP, I believe your thinking sound. I ran your numbers against total payout using the joint life expectancy tables to come up with an average ROI for each of the annuities. For the early annuity, it would equal 1.85%/year over 49 years and for the retirement age one it translates to 6.06%/year over 26 years assuming $83000 invested. In both cases, I think you could do better investing the lump sum and neither annuity would likely fill a cash flow deficit given your $5MM net worth.
by cvn74n2
Thu Apr 21, 2022 4:16 pm
Forum: Personal Finance (Not Investing)
Topic: Immediate Annuities, historical rates?
Replies: 10
Views: 1223

Re: Immediate Annuities, historical rates?

FWIW, the Federal Thrift Savings Plan has a historical list of annuity rates per month since 2002 (https://www.tsp.gov/annuity-basics/hist ... uity-rates). The annuity rate is somewhat competitive as it does not distinguish between male/female but is life/joint life only with no guaranteed year/cash back options. Nonetheless, the list provides a sense of where annuity rates were.
by cvn74n2
Sat Apr 16, 2022 4:18 pm
Forum: Investing - Theory, News & General
Topic: What are you up YTD? [Year To Date]
Replies: 5249
Views: 900238

Re: What are you up YTD? [Year To Date]

Just ran the numbers through 04/14: -7.00% at 60/40 all US / Treasuries (duration ~11 years with a mix of nominal and TIPs funds). I am tinkering with my portfolio as I adjust to retirement (moving towards simplicity - VTI and individual TIPs/I Bonds). My bogey is VBIAX which is at -8.41% so I guess I am losing less (still not fun). :annoyed
by cvn74n2
Tue Apr 05, 2022 3:00 pm
Forum: Personal Investments
Topic: TIPS ladder question
Replies: 5
Views: 1079

Re: TIPS ladder question

A possible easier solution if the OP has a significant other would be to divide the majority of money into the I Bond gift box on Treasury Direct for both OP and SO. The I Bonds would accumulate interest while waiting to be delivered each year on the ladder (currently up to $10k/year per account). The first couple years will have the 3 month penalty applied, but that still comes out more than the current guaranteed negative real return for near years' TIPS if held to maturity. Basically a fee-free deferred annuity that can never go negative unlike TIPS. If OP decides to go this route, suggest doing so this month to capture the current rate: 7.12%.
by cvn74n2
Sun Feb 13, 2022 2:42 pm
Forum: Personal Investments
Topic: Asset allocation when you've won
Replies: 61
Views: 11739

Re: Asset allocation when you've won

One thing I haven't seen much discussed is: do allocation percentages change when factoring in self-insuring for potential LTC costs? Reading other forums, many say anticipate spending ~$100k/year for 3+ years should one need full-time care in addition to the run-up/wind-down costs of in-home care. I am leaning towards bucketing that amount into TSP G fund and/or TIPS ladder and not including it in my asset allocation. Kind of like having a stable reserve available if something catastrophic occurs with few market forces acting on it. FWIW, I am not sold on the concept of buying whole/universal life insurance with a LTC rider. Thoughts?
by cvn74n2
Sat Dec 18, 2021 4:27 pm
Forum: Personal Finance (Not Investing)
Topic: Breaking up a 401k with mixed pre-tax and Roth
Replies: 15
Views: 1392

Re: Breaking up a 401k with mixed pre-tax and Roth

Our success with mailing things to Vanguard that they acknowledge receiving has been abysmal. For instance, we tried to directly transfer my wife's Janus IRA to her existing Vanguard IRA electronically but the verification site failed. Then we mailed the hardcopy paperwork to PA as per the instructions prior to the move to El Paso. After three weeks of nothing, I contacted them through the now extinct secure message system asking for status. They replied non-receipt of the package (I still think it is in the dead letter box somewhere on the campus). Reprinted the paperwork and mailed certified USPS to El Paso. After another three weeks, still no action in spite of it being delivered per USPS. Again, I contacted Vanguard through their SMS an...
by cvn74n2
Sat Dec 18, 2021 2:48 pm
Forum: Personal Finance (Not Investing)
Topic: Breaking up a 401k with mixed pre-tax and Roth
Replies: 15
Views: 1392

Re: Breaking up a 401k with mixed pre-tax and Roth

My 401k is with Vanguard. I called last week and spoke with a CSR on how to rollover my account to my IRA. I was told it's all electronic and they cash out the funds after plan administrator approval, sending the check to me to rollover with the 60 day requirement. No direct trustee-to-trustee nor in-kind transfers. I even said I wanted to rollover my Vanguard funds to my Vanguard IRA and the CSR said that it would be the same process. If I was given bad advice, that would be good, but I doubt it.
by cvn74n2
Sun Sep 27, 2020 5:03 pm
Forum: Investing - Theory, News & General
Topic: Vanguard will be moving their mail operations to El Paso in the future
Replies: 50
Views: 14400

Re: Vanguard will be moving their mail operations to El Paso in the future

As an update to my 02 Aug rant, we sent another set of hard copy paperwork to the El Paso processing center. This time it was sent via USPS Certified Mail. Per the USPS website, the paperwork was delivered on 21 Aug. There has been no reflection of receipt/work on Vanguard's part. :twisted: Subsequent messages sent to Vanguard Voyager via account messaging went unanswered until 18 Sep. According to Vanguard, the paperwork has yet to be received. I provided the tracking number to show it was delivered but have yet to receive a reply. This marks the second time Vanguard internal processing went awry. I have resigned myself to making a rollover vice transfer. I don't expect to do another rollover in the next 365 days and at least I will be in ...